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Information Noise in the Stock Market and Profitability of the Financial Asset

Author

Listed:
  • Nikolai Stoichev

Abstract

In the study is introduced the noise as a new factor of profitability and it expands the range of instruments and methods of analysis. The reporting more factors of the profitability aims at receiving more reliable evaluation of the sensibility, which suggests more reliable base for choice of corporate shares for the investment portfolio. The use of the degree to which the profitability of the corporate share is influenced by the noise impact of the stick market is a new and significant sign for selection of assets, which presents a favorable starting position for forecasting of the future income from the asset.

Suggested Citation

  • Nikolai Stoichev, 2002. "Information Noise in the Stock Market and Profitability of the Financial Asset," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 88-115.
    • Handle: RePEc:bas:econst:y:2002:i:2:p:88-115
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    References listed on IDEAS

    as
    1. Shleifer, Andrei & Summers, Lawrence H, 1990. "The Noise Trader Approach to Finance," Journal of Economic Perspectives, American Economic Association, vol. 4(2), pages 19-33, Spring.
    2. Pogue, Gerald A. & Solnik, Bruno H., 1974. "The Market Model Applied to European Common Stocks: Some Empirical Results," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 9(6), pages 917-944, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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